What was the estimated fair value of Carls' Series 2018-1 Class A-2-11 Notes in 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | -------------------- | ---- | ------------------------- | ||||
|---|---|---|---|---|---|---|---|---|
| Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||
| Financial assets: | ||||||||
| Cash and cash equivalents $ | 107,853 | $ | 107,853 | $ | 130,508 | $ | 130,508 | |
| Cash and cash equivalents - restricted | 16,053 | 16,053 | 16,059 | 16,059 | ||||
| Notes receivable | 389 | 389 | 520 | 520 | ||||
| Financial liabilities: | ||||||||
| Series 2018-1 Class A-2-11 Notes | 332,363 | 319,515 | 335,081 | 346,261 | ||||
| Series 2018-1 Class A-2-III Notes | 236,353 | 227,945 | 238,532 | 245,764 | ||||
| Series 2020-1 Class A-2 Notes | 385,688 | 346,802 | 388,786 | 401 ,714 | ||||
| Series 2021-1 Class A-2 Notes | 173,801 | 146,485 | 175,115 | 173,944 | ||||
| Other Notes | 1,900 | 1,900 | 1,900 | 1,900 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the estimated fair value of the Series 2018-1 Class A-2-11 Notes in 2022 was $346,261. The carrying amount for these notes in 2022 was $335,081.
Carls's Series 2018-1 Class A-2 Notes were issued in three tranches. The Series 2018-1 Class A-2-11 Notes are fixed rate senior secured notes with an anticipated repayment date of June 2025.
The fair values are determined by obtaining estimated market prices from an investment banking firm as of the balance sheet dates. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.